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R-CALF USA 7 th Annual National Convention January 19th, 2006

R-CALF USA 7 th Annual National Convention January 19th, 2006. Export Developments and Opportunities. Philip Seng President and CEO U.S. Meat Export Federation. USMEF Mission Statement.

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R-CALF USA 7 th Annual National Convention January 19th, 2006

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  1. R-CALF USA 7th Annual National ConventionJanuary 19th, 2006 Export Developments and Opportunities Philip Seng President and CEO U.S. Meat Export Federation

  2. USMEF Mission Statement “To increase the value and profitability of the U.S. beef, pork and lamb industries by enhancing demand for their products in targeted export markets through a dynamic partnership of all stakeholders.”

  3. St. Petersburg Denver London Moscow Tokyo Seoul Osaka Beirut Monterrey Shanghai Mexico City Guangzhou Taipei Caracas Hong Kong Singapore Sao Paulo USMEF Offices & Representatives

  4. Strategic Priorities • Market Access • Trade Support • Market Presence • Buyer Education and Loyalty • Product Image • Total Carcass Utilization

  5. Making the Case for Trade • Trade drives efficiency and continual improvement • Trade expands our market: • U.S. beef consumption: 12.5 mmt • World beef consumption: 60.2 mmt • Trade agreements have greatly benefited the beef industry as we have utilized them • Japan beef access agreement • Korean beef agreement • NAFTA

  6. Impact of Trade Liberalization U.S. Beef Exports 1970-2000 (1,000 MT) Uruguay Round (95) Canadian Free Trade Agreement (89) China PNTR (00) Japan Beef-Citrus Agreement (88) Tokyo Round (78) North American Free Trade Agreement (94) Korea Beef Agreement (93) Japan SPS Agreement (84) Source: U.S. Census

  7. U.S. FTA’s ?

  8. Ongoing FTA’s • FTAA • S. African Customs Union • Bahrain • Thailand • Andean • Panama • UAE • Oman • Egypt • Malaysia • Switzerland

  9. Beef Trade

  10. Historical Growth +61% Growth U.S. Beef Consumption +129% Growth Rest of World Beef Consumption Source: FAO, USMEF

  11. U.S. Production as a % of Global Consumption Global Consumption is Outpacing U.S. Production Source: FAO

  12. U.S. Beef and Beef Variety Meat Exports Source: USDA, USMEF

  13. Trade Balance - U.S. Beef and Cattle - Source: Department of Commerce, U.S. Census Bureau, Foreign Trade Statistics

  14. Potential Market Size U.S. Beef Production World Meat* Consumption * Beef, Pork, and Poultry Source: FAO

  15. Benefits of U.S. Beef Trade • Market Expansion • Global Involvement • Build “Brand” Equity • Export Premiums • Maintain Competitiveness

  16. Why Trade? • Effects of anti-trade policies • Example: “Fortress Europe” • Competitive resources, capital • Reacted to competition with protection • Currently forced into a precarious situation • Competition drives efficiencies • React with aggressive promotion, production strategies • An industry that cannot be competitive internationally will not be competitive domestically!

  17. Beef Export Premiums Export premiums on these 5 cuts alone represent $78 per head Source: USMEF

  18. What Does the Future Hold?

  19. The next 25 to 50 years • Population • Resource management • Technology • Knowledge • Economic integration • Conflict • Governance

  20. Future Global Beef DemandFAO Beef Consumption Estimates 13 million mt every 15 years +44% +22% % change from base year Source: FAO

  21. Globalization • Globalization is increasing – livestock sector • Livestock and products • Ideas, trends, technology • Investment and finance • Retail expansion into developing markets is increasing global trade • Mexico • Wal-Mart going from 48 to 90 outlets in China by the end of 2006 • Supermarkets now acct for 55% of food retailing in Mexico, Philippines, Chile • This globalization benefits our competitors as well

  22. Global Competition • Australia beef checkoff changed to $5 per head (almost entirely international) • Canada has roughly $60 million to invest in overseas market development • Virtually all beef competitors have traceability in one form or another • Global demand is rapidly growing • Shifts in consumption and production • Trade is liberalization is expanding • Bilateral agreements increasing • U.S. is committed to pursuing FTA’s

  23. Regaining Markets

  24. U.S. Beef/BVM Exports 2003 2004 2005 Source: USDA

  25. BSE – New Realities • Information is the cost of admission • Ito Yokado http://look.itoyokado.iyg.co.jp/ • Plate to Gate, not Gate to Plate • Market driven by consumers, not producers • Beef production and trade is at a turning point • Monolithic vs. polylithic

  26. Japan Relaunch “Image-Up”

  27. USMEF Role in Post-BSE World • Add Value • Regain Market Share • Position U.S. Beef • Safety • Health • Quality

  28. U.S. BEEF/BVM Forecasts % of 2003 +98% +93% +82% +49% +33% Source: USDA / USMEF Forecasts

  29. The Role of Science in Trade Policy

  30. Number of New SPS Issues Raised Each Year Source: WTO

  31. Specific Trade Concerns by Product Source: WTO, 2000-2001 measures

  32. Trade Concerns Reported Solved After 10 Years Source: WTO

  33. Where Do We Go From Here? To compete globally: • Focus on U.S. advantages: • Diversity, flexibility of programs, grain-fed • Aggressively pursue trade and competition • Embrace trade enhancing policies • “Export-minded” mentality • Promote agility and ingenuity

  34. Questions ? For more information: USMEF – Denver 303-623-6328 www.usmef.org

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